Washington, DC |
On July 13, the Executive Board of the International Monetary Fund (IMF) approved a temporary increase in the annual limits on overall access to resources in the General Resources Account and the Poverty Reduction and Growth Trust. The severe impact of the COVID-19 pandemic on global economic conditions has resulted in an unprecedented number of member countries seeking financial support from the IMF. As of July 13, 2020, 72 countries have already received financial assistance from the IMF’s emergency financing instruments since the onset of the pandemic, facilitated by the doubling of annual access limits under these facilities approved by the Executive Board on April 6. Further requests for assistance, the majority of which are likely to be met through the IMF’s regular lending instruments, are expected in the months ahead.
IMF lending is subject to an annual limit on the access to resources that a country can obtain from its general resources and a separate annual limit on access under its concessional facilities. Many of the countries that have received financial support from the IMF since the onset of the pandemic have reached, or are approaching, the relevant annual access limits. Requests for financial assistance in excess of these annual limits trigger application of the relevant exceptional access framework, where the request is subject to tighter scrutiny and can be approved only if specified criteria are met.
Given the unique circumstances created by the pandemic, the IMF’s Executive Board approved temporary increases in these annual access limits, to remain in effect through April 6, 2021. This will allow member countries to obtain higher levels of financial support during this time period without triggering the application of the exceptional access framework. The existing limits on cumulative access are unaffected by this temporary change.
The Executive Board also approved the temporary suspension of the limit on the number of disbursements under the Rapid Credit Facility (RCF) through April 6, 2021. This allows emergency financing to the IMF’s poorest member countries to be provided more frequently over the course of a year, provided that the combined amounts of support provided under the RCF does not exceed the annual limit on access under this facility.
Executive Board Assessment [1]
Executive Directors welcomed the opportunity to consider proposals to raise the limits on annual access to Fund resources on a temporary basis. They noted that the COVID‑19 pandemic had triggered a uniquely severe synchronized shock across the global economy and an ensuing surge in requests for financial support under the Fund’s emergency financing instruments. While access limits under these instruments had already been increased temporarily on April 6 as part of the Fund’s COVID‑19 response, Directors recognized that many countries, in seeking to contain the impact of the pandemic and to lay the basis for economic recovery, would likely need additional financial support from the Fund in the coming year.
Against this background, Directors supported increases in the annual access limits in the General Resources Account (GRA) from 145 to 245 percent of quota, and under the Poverty Reduction and Growth Trust (PRGT) from 100 percent to 150 percent of quota, on a temporary basis through April 6, 2021. They also supported a temporary increase in the exceptional annual access limit under the PRGT by 50 percent of quota to 183.33 percent of quota for the same period. While a few Directors would have preferred more moderate increases, many other Directors would have supported a larger increase in the normal annual access limit under the PRGT, in line with the increase in the limit to access to GRA resources. Directors highlighted the need to secure sufficient subsidy resources to ensure the self‑sustainability of the PRGT and looked forward to discussing possible funding options in the upcoming review of concessional financing. Directors also looked forward to the planned discussion of a policy on enhanced safeguards for high‑level access to combined GRA and PRGT resources. They took note of the clarifications as to how annual access should be calculated in applying the relevant annual access limits.
Directors agreed to suspend, on a temporary basis, the limit on the number of disbursements under the Rapid Credit Facility (RCF) within a 12‑month period through April 6, 2021. They acknowledged that, with the temporary doubling of the limit on annual access to resources under the exogenous shocks window of the RCF, the current limit on the number of disbursements unduly constrains the flexibility with which the RCF could be used to support member countries.
Given prevailing uncertainties, Directors agreed to review the decisions adopted today before the end of 2020, taking account of the initial experience with the use of the higher access limits and of the global economic outlook at that juncture.
Directors acknowledged that possible modifications to the cumulative limits on overall access to the GRA and the PRGT would be considered in a broader discussion of the Fund’s risk tolerance in the coming months. Many Directors expressed disappointment that the case for increasing these limits was not proposed for consideration in the current context, while many other Directors opposed or urged caution in considering a change that could weaken important safeguards and pose substantial risks to the Fund. Directors also recognized that these cumulative access limits do not set a ceiling on the amount of financing that a member can obtain from the Fund but rather serve as a trigger for additional scrutiny under the exceptional access framework, with the exception of hard access caps in the PRGT. Directors looked forward to an early discussion of the Fund’s precautionary balances.
Directors underscored that access limits are key elements of the Fund’s risk management framework, providing an important safeguard to Fund resources and preserving their revolving nature and catalytic role. They noted that, notwithstanding higher access limits to cover the pandemic period, judgment continues to be needed in determining the amount of access in individual arrangements, including in assessing the member’s balance of payments need, repayment capacity, and strength of adjustment efforts. Directors stressed the importance of enhanced scrutiny and additional safeguards for exceptional access cases. Although the increased access limits heighten risks to the Fund, many Directors pointed to potential risks from the failure of the Fund to provide adequate financial support to its members.
[1] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.
Compliments of the IMF.

The EU is providing additional funding and flexibility in the use of the structural funds to help member states’ recovery efforts following the COVID-19 outbreak.
EU ambassadors, meeting within the Committee of Permanent Representatives, today endorsed the Council’s partial position on REACT-EU, the EU initiative with the biggest impact in the short to medium term, as well as on a series of amendments to long-term legislative proposals.

We must ensure that European regions not only survive the crisis but emerge stronger from it. In this respect, the prompt adoption of REACT-EU will help deliver support to regions and territories quickly and help prevent the widening of disparities as a result of the pandemic.Peter Altmaier, Federal Minister for Economic Affairs and Energy, German presidency of the Council

REACT-EU will provide exceptional additional resources to member states, to be used for bolstering the economy and jobs in the worst affected regions and preparing a green, digital and resilient recovery.
The resources will be made available in 2021 and 2022, serving as a bridge from the emergency COVID-19 response to the next phase, of repairing the economy in the long term.
REACT-EU will primarily support health services and SMEs, the preservation of jobs and job creation, particularly for people in vulnerable situations, youth employment, and access to social services. Member states may also increase allocations for programmes for the most deprived.
Cohesion package 2021-2027
Also today, EU ambassadors endorsed the Council’s updated partial position, which takes into account the amendments to the structural funds for the 2021-2027 programming period.
The changes to the legislative package, which was originally proposed in May 2018, introduce measures aimed at tackling the socio-economic fallout of the COVID-19 outbreak.
Consequently, the Council’s position endorses the role of culture and tourism in economic development, social inclusion and social innovation. This means that member states will be able to invest more in these two sectors, which have been severely hit by the pandemic.
In addition, a new provision allows for the adoption of temporary measures for flexible use of the funds in future times of crisis.
The Council’s position excludes the financial elements of the proposals, including REACT-EU, which still need to be added to the negotiating mandate following the overall agreement reached on 21 July on the EU’s long-term budget and recovery package.
Next steps
Once the European Parliament has agreed on its position on the legislative proposals, negotiations will begin between the two institutions with the aim of reaching an agreement.
Council’s partial mandate on REACT-EU, 17 July 2020
Council’s partial mandate on ERDF and Cohesion Fund, 17 July 2020
Council’s partial mandate on ESF Plus, 17 July 2020
Council’s partial mandate on the Common Provisions Regulation, 17 July 2020
Compliments of the Council of the EU.

EU Leaders agreed a package of €1,824.3 billion combining the multiannual financial framework and the extraordinary recovery fund Next Generation EU that will help the EU to rebuild after the COVID-19 pandemic and will support investments in the green and digital transitions.

We have reached a deal on the recovery package and the European budget. These were, of course, difficult negotiations in very difficult times for all Europeans. A marathon which ended in success for all 27 member states, but especially for the people. This is a good deal. This is a strong deal. And most importantly, this is the right deal for Europe, right now.President Michel at the press conference of the European Council

The socio-economic fallout from the COVID-19 crisis requires a joint and innovative effort at EU level in order to support the recovery and resilience of the member states’ economies.
To achieve the desired result and be sustainable, the recovery effort should be linked to the traditional multiannual financial framework (MFF), which has shaped EU budgetary policies since 1988 and offers a long-term perspective.
EU leaders have agreed to a comprehensive package of €1 824.3 billion which combines MFF and an extraordinary recovery effort under the Next Generation EU (NGEU) instrument.
Long-term EU budget
The new Multiannual Financial Framework (MFF) will cover seven years between 2021 and 2027. The MFF, reinforced by Next Generation EU, will also be the main instrument for implementing the recovery package to tackle the socio-economic consequences of the COVID-19 pandemic.
The size of the MFF – €1 074.3 billion – will allow the EU to fulfill its long-term objectives and preserve the full capacity of the recovery plan. This proposal is largely based on the proposal made by President Michel in February, which reflected two years of discussions between member states.
The MFF will cover the following spending areas:
single market, innovation and digital
cohesion, resilience and values
natural resources and the environment
migration and border management
security and defence
neighbourhood and the world
European public administration
Recovery fund
Next Generation EU will provide the Union with the necessary means to address the challenges posed by the COVID-19 pandemic. Under the agreement the Commission will be able to borrow up to €750 billion on the markets. These funds may be used for back-to-back loans and for expenditure channelled through the MFF programmes. Capital raised on the financial markets will be repaid by 2058.
The amounts available under NGEU will be allocated to seven individual programmes:
Recovery and Resilience Facility (RFF)
ReactEU
Horizon Europe
InvestEU
Rural Development
Just Transition Fund, and
RescEU.
Loans and grants
€390 billion from the package will be distributed in the form of grants to member states and €360 billion in loans.
Allocation from the Recovery and Resilience Facility (RRF)
The plan ensures the money goes to the countries and sectors most affected by the crisis: 70% under the grants of the Recovery and Resilience Facility will be committed in 2021 and 2022 and 30% will be committed in 2023.
Allocations from the RRF in 2021-2022 will be established according to the Commission’s allocation criteria taking into account  member states’ respective living standards, size and unemployment levels.
For 2023 allocations, the unemployment criterion will be replaced by the drop in GDP in 2020 and 2021.
Governance and conditionality
In line with the principles of good governance, member states will prepare national recovery and resilience plans for 2021-2023. These will need to be consistent with the country-specific recommendations and contribute to green and digital transitions. More specifically, the plans are required to boost growth and jobs and reinforce the “economic and social resilience” of EU countries. The plans will be reviewed in 2022. The assessment of these plans will be approved by the Council by a qualified majority vote on a proposal by the Commission.
The disbursement of grants will take place only if the agreed milestones and targets set out in the recovery and resilience plans are fulfilled.
If, exceptionally, one or more member states consider that there are serious deviations from the satisfactory fulfillment of the relevant milestones and targets, they may request that the President of the European Council refer the matter to the next European Council.
Climate action
30% of the total expenditure from the MFF and Next Generation EU will target climate-related projects. Expenses under the MFF and Next Generation EU will comply with the EU’s objective of climate neutrality by 2050, the EU’s 2030 climate targets and the Paris Agreement.
Rule of law
The Union’s financial interests will be protected in accordance with the general principles embedded in the Union Treaties, in particular the values referred to in Article 2 TEU. The European Council also underlines the importance of the respect of the rule of law. Based on this background, a regime of conditionality to protect the budget and Next Generation EU will be introduced.
Rebates
Lump sum rebates on the annual gross national income-based contribution will be maintained for Denmark, Germany, the Netherlands, Austria and Sweden.
Own resources
EU leaders agreed to provide the EU with new resources to pay back funds raised under Next Generation EU. They agreed on a new plastic levy that will be introduced in 2021. In the same year the Commission is expected to put forward a proposal for a carbon adjustment measure and a digital levy, both of which would be introduced by the end of 2022.
The Commission would then come back with a revised proposal on the EU emissions trading scheme (ETS), possibly extending it to the aviation and maritime sectors. There may also be other new resources, such as a financial transaction tax. The proceeds of the new own resources introduced after 2021 will be used for early repayment of NGEU borrowing.
A €5 billion Brexit reserve will be established to support the member states and economic sectors hardest hit by Brexit.
Useful Links
European Council Conclusions (17-21 July 2020)
Remarks by President Charles Michel after the Special European Council, 17-21 July 2020
Opening remarks by President von der Leyen at the joint press conference with President Michel following the Special European Council meeting of 17-21 July 2020
Compliments of the Delegation of the European Union in the United States.

The Council today adopted new rules to improve the way crowdfunding platforms operate across the EU.
The new framework is part of the capital markets union’s project which aims at providing an easier access to new financing sources. It will remove barriers for crowdfunding platforms to provide their services cross-border by harmonising the minimum requirements when operating in their home market and other EU countries. It will also increase legal certainty through common investor protection rules.
The new rules will cover crowdfunding campaigns of up to EUR 5 million over a 12 month period. Larger operations will be regulated by MiFID and the prospectus regulation. Reward- and donation-based crowdfunding fall outside the rules’ scope since they cannot be regarded as financial services.
The adopted rules provide a high level of investor protection, whilst taking into account compliance cost for providers: they set out common prudential, information and transparency requirements and include specific requirements for non-sophisticated investors. The rules for EU crowdfunding businesses will be tailored depending on whether they provide their funding in the form of a loan or an investment (through shares and bonds issued by the company that raises funds).
The framework defines common authorisation and supervision rules for national competent authorities. The European Securities and Markets Authority (ESMA) will have an enhanced role to facilitate coordination and cooperation, through a binding dispute mediation mechanism and the development of technical standards.
Background and process
Crowdfunding is an emerging alternative form of financing that connects, typically via the Internet, those who can give, lend or invest money directly with those who need financing for a specific project. For start-ups and other SMEs, bank lending is often expensive or difficult to access due to the lack of credit history or a lack of tangible collateral. Crowdfunding can be a useful substitute funding source, in particular in the early stages of business.
Formally, the Council today adopted its position at first reading. The regulation now needs to be adopted by the European Parliament at second reading before it can be published in the Official Journal and enter into force.
Text of the crowdfunding directive, 8 July 2020
Text of the crowdfunding regulation, 8 July 2020
Compliments the European Council.

Thank you very much.
Ladies and gentlemen,
First of all, I would like to thank the President of the European Council – Charles Michel – for his enormous efforts and perseverance. This European Council’s success is also his success.
And I would like to thank Angela Merkel for her exceptional guidance. We negotiated for four long days and nights – more than 90 hours – but it was worth it. This agreement is a signal that Europe is capable of taking action.
A popular prejudiced view of Europe is that our reactions are ‘too little, too late’. This proves otherwise. At the end of April, the European Council tasked us with drawing up a recovery package. Today, only two months later, we have NextGenerationEU and it has the approval of the European Council.
In the history of the EU, this is an all-time record for a new budgetary instrument. And NextGenerationEU is impressive in its scope, worth more than EUR 1.8 trillion. That is more than 5% of the EU 27’s GDP. Europe still has the courage and imagination to think big!
Exhausted though we all may be, we are also conscious that this is an historic moment in Europe. We find ourselves in one of the most serious of economic and public health crises. And yet, following tough negotiations, Europe has successfully responded in force to this unprecedented crisis. This response draws on the EU budget and combines solidarity with responsibility.
‘Solidarity’, because all 27 Member States stand jointly behind NextGenerationEU. And ‘responsibility’, because NextGenerationEU not only leads the way out of this crisis – it can also lay the foundations for a modern, more sustainable Europe.
I want to emphasise two more points. We have now the New Own Resources tightly linked to the repayment. This is a big step forward with a clear timetable. Member States will benefit as they will contribute less to repay the investments. And the New Own Resources will strengthen the European Union also in the long term. I am glad that we managed to safeguard this achievement during the whole negotiations.
And Europe’s recovery will be green! The new budget will power the European Green Deal. It will accelerate the digitalisation of Europe’s economy. Thanks to NextGenerationEU, national reforms will be boosted. We invest in Europe’s future.
And finally, unlike in previous crises, this time, Member States have not opted for an intergovernmental solution. But they have entrusted the European Commission with Europe’s recovery. We will together manage a total of EUR 1.8 trillion. The bulk of the money will be channelled through the programmes in which the European Parliament is involved. NextGenerationEU comes with a great responsibility. We are determined to bring about reforms and investment in Europe.
Nevertheless, I must also mention a difficult point: In their search for a compromise, leaders have made far-reaching adjustments in the new MFF and NextGenerationEU, for example in health, migration, external action and InvestEU; they have not taken up the Solvency Instrument. This is regrettable. It decreases the innovative part of the budget, even if more than 50% of the overall budget – MFF and NextGenerationEU – will support modern policies.
Finally, to conclude: Europe as a whole has now a big chance to come out stronger from the crisis. Today, we have taken a historic step, we all can be proud of. But another important step remains ahead of us. First and foremost, we now have to work with the European Parliament to secure agreement. We have a lot of work ahead of us, but tonight is a big step forward towards recovery.
Thank you!
Compliments of the European Commission.

Opening remarks by European Commission President von der Leyen | Brussels | July, 21 2020
Thank you very much.
Ladies and gentlemen,
First of all, I would like to thank the President of the European Council – Charles Michel – for his enormous efforts and perseverance. This European Council’s success is also his success.
And I would like to thank Angela Merkel for her exceptional guidance. We negotiated for four long days and nights – more than 90 hours – but it was worth it. This agreement is a signal that Europe is capable of taking action.
A popular prejudiced view of Europe is that our reactions are ‘too little, too late’. This proves otherwise. At the end of April, the European Council tasked us with drawing up a recovery package. Today, only two months later, we have NextGenerationEU and it has the approval of the European Council.
In the history of the EU, this is an all-time record for a new budgetary instrument. And NextGenerationEU is impressive in its scope, worth more than EUR 1.8 trillion. That is more than 5% of the EU 27’s GDP. Europe still has the courage and imagination to think big!
Exhausted though we all may be, we are also conscious that this is an historic moment in Europe. We find ourselves in one of the most serious of economic and public health crises. And yet, following tough negotiations, Europe has successfully responded in force to this unprecedented crisis. This response draws on the EU budget and combines solidarity with responsibility.
‘Solidarity’, because all 27 Member States stand jointly behind NextGenerationEU. And ‘responsibility’, because NextGenerationEU not only leads the way out of this crisis – it can also lay the foundations for a modern, more sustainable Europe.
I want to emphasise two more points. We have now the New Own Resources tightly linked to the repayment. This is a big step forward with a clear timetable. Member States will benefit as they will contribute less to repay the investments. And the New Own Resources will strengthen the European Union also in the long term. I am glad that we managed to safeguard this achievement during the whole negotiations.
And Europe’s recovery will be green! The new budget will power the European Green Deal. It will accelerate the digitalisation of Europe’s economy. Thanks to NextGenerationEU, national reforms will be boosted. We invest in Europe’s future.
And finally, unlike in previous crises, this time, Member States have not opted for an intergovernmental solution. But they have entrusted the European Commission with Europe’s recovery. We will together manage a total of EUR 1.8 trillion. The bulk of the money will be channelled through the programmes in which the European Parliament is involved. NextGenerationEU comes with a great responsibility. We are determined to bring about reforms and investment in Europe.
Nevertheless, I must also mention a difficult point: In their search for a compromise, leaders have made far-reaching adjustments in the new MFF and NextGenerationEU, for example in health, migration, external action and InvestEU; they have not taken up the Solvency Instrument. This is regrettable. It decreases the innovative part of the budget, even if more than 50% of the overall budget – MFF and NextGenerationEU – will support modern policies.
Finally, to conclude: Europe as a whole has now a big chance to come out stronger from the crisis. Today, we have taken a historic step, we all can be proud of. But another important step remains ahead of us. First and foremost, we now have to work with the European Parliament to secure agreement. We have a lot of work ahead of us, but tonight is a big step forward towards recovery.
Thank you!

Compliments of the European Commission
________
Details on the EU Recovery Plan “Next Generation EU” can be found here: https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/recovery-plan-europe_en.

EU leaders agreed to borrow €750 billion for a EU recovery fund, composed of €390 billion in grants & €360 billion in loans, attached to a new €1.074 trillion 7-year budget, the Multiannual Financial Framework (#MFF), bringing the total financial package to €1.82 trillion.

Brussels, 17/07/2020 | Statement by HR/VP
I am deeply concerned at the growing use of sanctions, or the threat of sanctions, by the United States against European companies and interests. We have witnessed this developing trend in the cases of Iran, Cuba, the International Criminal Court and most recently the Nordstream 2 and Turkstream projects.
As a matter of principle the European Union opposes the use of sanctions by third countries on European companies carrying out legitimate business. Moreover, it considers the extraterritorial application of sanctions to be contrary to international law. European policies should be determined here in Europe not by third countries.
Where common foreign and security policy goals are shared, there is great value in the coordination of targeted sanctions with partners. We have seen many positive examples of this and will continue to coordinate where we can. Where policy differences exist, the European Union is always open to dialogue. But this cannot take place against the threat of sanctions.
Compliments of the Delegation of the EU to the US.

Secretary-General Angel Gurría briefed the G20 Finance Ministers today on ongoing negotiations to address the tax challenges of digitalisation and on recent international tax developments |
Overview
Since I last reported to you in February 2020, the world has undergone a cataclysmic change. The emergence of the COVID-19 pandemic has upended daily life as countries attempt to protect the health of their citizens and mitigate the economic fallout from the ongoing crisis.
In responding to this crisis, the tax agenda is more relevant than ever. First, fiscal measures – in particular tax-related measures – have played and will continue to play a critical role as countries continue to navigate their way through the COVID-19 crisis. Following a request of Saudi Arabia’s G20 Presidency, the OECD outlined measures taken by countries in its report Tax and Fiscal Policy in Response to the Coronavirus Crisis: Strengthening Confidence and Resilience1, presented during the virtual meeting of the G20 Finance Ministers and Central Bank Governors, on 15 April 2020. Effective tax policy responses in the recovery phase will provide countries with essential tools to face the upcoming challenges arising from the current crisis. The OECD stands ready to deliver tax policy recommendations by spring 2021.
Second, there remains a pressing issue that has been on the table for more than seven years: reaching a multilateral, consensus-based solution to the tax challenges arising from the digitalisation of the economy amongst the 137 members of the G20/OECD Inclusive Framework on BEPS (the G20/OECD Inclusive Framework). Although practical challenges as a result of the pandemic have inevitably affected the pace of progress, technical work on a solution continues to progress well under both Pillar One (establishing a new nexus and reallocating taxing rights) and Pillar Two (ensuring a minimum level of taxation). Since January, and the adoption of an outline of Pillar One based on an OECD Secretariat proposal for a Unified Approach, 11 building blocks have been developed technically by the G20/OECD Inclusive Framework. Work on Pillar Two has also progressed well, with the aim of delivering blueprints for each Pillar for the October meeting of G20 Finance Ministers. Failure to reach an agreement comes with serious risks of escalating tax and trade tensions, which would further undermine the global economy.
Contrary to what has been reported publicly, all members are committed to the current negotiation even though some are of the view that a pause at the political level is needed. We encourage you all to remain fully engaged and advance the work so that, when the COVID-19 crisis is over and some of the electoral deadlines have passed, a political agreement can be reached. We look forward to delivering a detailed blueprint of Pillar One in October, embedding needed simplification measures to the architecture of the Pillar that was agreed in January 2020. This blueprint could serve as the basis for both a public consultation, so that all stakeholders can input and comment, and a final round of negotiation with a view to agreeing a consensus based solution.
The work to finalise Pillar Two is also well advanced and is increasingly relevant as public tolerance of tax avoidance by companies is expected to reach an historic low in the aftermath of the COVID-19 crisis. By ensuring that a minimum level of tax will be paid on all profits made by multinational enterprises, Pillar Two offers another powerful tool to address BEPS and also establishes a floor to tax competition. Work is underway to finalise the technical design of Pillar Two, which will be submitted to the G20/OECD Inclusive Framework at its plenary meeting in October 2020.
Reaching a solution to the tax challenges arising from digitalisation will only be achieved with your strong leadership and clear political support. International co-operation is needed more than ever to provide tax certainty to businesses during very uncertain times and to prevent an unnecessary exacerbation of the already daunting economic challenges posed by the pandemic.
Further progress on the tax agenda
Allow me to remind you that progress on international co-operation has been one of the great success stories of the G20. In the aftermath of the 2008 global financial crisis, you decided to end bank secrecy once and for all in order to crack down on tax evasion. Now, 12 years later, the results of the fruitful multilateral collaboration between the now 161 members of the OECD-hosted Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum), bank secrecy for tax purposes, and the tax evasion it facilitated, have been seriously reduced.
The numbers speak for themselves. Newly reported figures show that in 2019, information was exchanged on around 84 million financial accounts, with a total balance of around EUR 10 trillion. This represents a significant increase compared to the 2018 figures, amounting to 47 million financial accounts, representing EUR 5 trillion. With this wealth of new information, tax administrations so far have been able to identify for collection EUR 102 billion that was previously hidden money.
Effective multilateral co-operation has also delivered new model rules to require reporting by digital platform operators with respect to sellers in the sharing and gig economy. This new tax compliance tool approved by the 137 member countries and jurisdictions of the G20/OECD Inclusive Framework will greatly enhance transparency in this sector of the digital economy. Activities facilitated by digital platforms may not always be reported to tax administrations, either by third parties or by taxpayers themselves. The model rules are designed to help taxpayers comply with their tax obligations, while also ensuring a level playing field with traditional businesses, in the key sectors (e.g. accommodation and transportation) of the sharing and gig economy. These model rules also help digital platform operators by avoiding the excessive compliance burdens that would result from a multiplicity of uncoordinated unilateral reporting requirements. These new model rules constitute an important element in addressing the tax challenges arising from the digitalisation of the economy and demonstrate that multilateral co-operation continues to deliver.
Further proof of what can be accomplished through multilateralism can be seen from the results of the ongoing implementation of the OECD/G20 BEPS initiative. As you will recall, following a G20 mandate, international co-operation fundamentally altered the international tax landscape as countries agreed to crack down on base erosion and profit shifting practices by multinational companies. Since 2016, the implementation of the BEPS Project’s measures is producing results, as reflected in this year’s fourth annual progress report of the G20/OECD Inclusive Framework (see Annex 1). As a result of this co-operation, taxation is now better aligned with where value is created, tax transparency has increased, and individuals and businesses have benefitted from improvements to dispute resolution.
It should also be noted that a global crisis requires a global response, and particular attention should be devoted to the specific challenges faced by developing countries. As developing countries often rely to a large extent on corporate tax revenues, they may therefore suffer from BEPS behaviours to a greater degree, thereby restricting their fiscal space in times of economic crisis. Currently, the G20/OECD Inclusive Framework includes 70% of non-OECD, non-G20 member jurisdictions, including 66 developing member jurisdictions. Fortunately, through extensive training and capacity building efforts, developing countries are in a better position than they would have been in the absence of BEPS implementation. In addition, the partners in the Platform for Collaboration on Tax (PCT) – the International Monetary Fund (IMF), OECD, United Nations (UN), and World Bank Group (WBG) – continue to strengthen their co-operation in support of developing countries. The PCT continues to deliver on its 2018 Action Plan, and a full update on its activities is available in the Platform for Collaboration on Tax Progress Report 20202. Innovative programmes such as Tax Inspectors Without Borders (TIWB), which has resulted in over USD 530 million of tax revenue being recovered from tax assessments of over USD 1.7 billion to date, has also helped shore up the national budgets of developing countries.
Access the full report here: OECD SECRETARY-GENERAL TAX REPORT TO G20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS
Compliments of the OECD.

Together with our members we are creating a Video series of first-hand accounts of the Pandemic’s impact, both personally & professionally.

We invite you to join us today for a first-hand look at the impact of the global shutdown following the Coronavirus (COVID-19) outbreak – Today we are featuring Michael Levie, Chief Operations Officer, CitizenM Hotel a Member of the EACCNY.
The questions we asked our members for this series are:1) What are some challenges you, personally and your organization have faced?2) What are some of the most surprising (positive, innovative) responses/changes you have witnessed?3) How will this experience change us going forward, as a society and in terms of how we do business?

EACCNY has its finger on the pulse of how this worldwide pandemic is effecting companies and organizations on both sides of the Atlantic. EACC is where Americans & Europeans connect to do business.
Stay tuned for more on this series! We hope you enjoy these short vignettes our members and friends of the EACC created to share their experience.